NPS vs OPS: Govt Employees Must Decide by June 30 — Use This Pension Calculator to Make the Right Choice
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Are you a government employee thinking of switching from NPS to OPS? Understand the key differences, benefits, deadlines, and how this pension calculator can help you decide before the June 30 deadline.
continue with the National Pension System (NPS) or opt for the Old Pension Scheme (OPS).
As the June 30 deadline approaches, lakhs of government employees across India are facing a crucial financial decision — whether to continue with the National Pension System (NPS) or opt for the Old Pension Scheme (OPS). This decision, especially for those appointed between 2004 and 2024, can impact your retirement benefits, tax planning, and long-term financial stability.
In this blog, we break down the key differences between NPS and OPS, explain why the deadline matters, and introduce a helpful pension comparison calculator to guide your choice.
Use This Pension Calculator to Make an Informed Decision
To simplify the process, several platforms and state governments have released online pension calculators. These tools help compare:
Your expected pension under OPS
Your accumulated corpus and annuity under NPS
Net retirement benefits under both schemes
You’ll need:
Your date of joining
Current basic salary + DA
Years of service completed or expected
Contribution history (for NPS)
Where to find the calculator?
You can visit:
State government employee portals
Trusted financial planning websites
Final Thoughts: Make Your Pension Choice Wisely
The NPS vs OPS debate is not a one-size-fits-all decision. Each system has its own pros and cons, and what suits one person may not suit another. Use the pension calculator, talk to a financial advisor, and consider your retirement goals.
Remember: June 30 is the final date to opt back into OPS. If you miss the deadline, your future retirement benefits could be very different from what you expect today.
Take control of your financial future — compare, evaluate, and decide before it’s too late.
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What Is the NPS (National Pension System)?
Key Features of NPS:
Partial withdrawal allowed before retirement
60% lump sum withdrawal at retirement, 40% used to buy an annuity
Market-linked returns (average 8–10%)
Tax benefits under sections 80C and 80CCD(1B)
The NPS is a market-linked retirement savings scheme introduced by the Indian government. Employees contribute 10% of their basic salary plus DA, and the government matches the contribution. The corpus is invested in equities and debt instruments and is accessible upon retirement.
What Is the OPS (Old Pension Scheme)?
The OPS offers a defined benefit pension based on the last drawn salary, generally 50% of the last basic pay plus DA. It’s funded entirely by the government and doesn’t require employee contribution.
Key Features of OPS:
Guaranteed monthly pension for life
No contribution required from employees
Pension linked to inflation, adjusted via DA
Not market-dependent
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Why Is June 30 the Deadline?
Several state governments, including Rajasthan, Punjab, and Himachal Pradesh, have provided employees with a one-time option to switch from NPS to OPS. The Central Government has also issued similar guidelines for eligible employees.
However, employees must submit their option forms by June 30, 2025. Failure to do so will lock them into the NPS permanently, with no chance to return to OPS later.
So, if you're eligible and unsure which to choose, now is the time to act.
NPS vs OPS: Key Differences at a Glance
| Feature | NPS | OPS |
|---|---|---|
| Contribution | Mandatory (10% of salary) | No contribution |
| Pension | Based on market returns | Fixed (50% of last drawn salary) |
| Tax Benefits | Available under 80C, 80CCD | Limited |
| Risk Factor | Market-dependent | Low risk |
| Liquidity | Partial withdrawal allowed | No early withdrawal |
| Post-Retirement Support | Annuity purchase needed | Lifetime pension |
Who Should Consider Switching to OPS?
While the OPS provides a guaranteed pension for life, the NPS may offer higher returns depending on market performance. Here are some scenarios:
Choose OPS if:
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You prefer stability and predictability in retirement income
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You're in the final decade of service
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You're risk-averse
Stick with NPS if:
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You're younger and have time to grow your investments
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You’re comfortable with market-linked instruments
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You want flexibility and potential for higher returns
If you miss the June 30 deadline, you will stay enrolled in the National Pension System and cannot switch back to the Old Pension Scheme at any time in the future.
No, once you choose the Old Pension Scheme, you cannot go back to the National Pension System.
The National Pension System offers a pension based on market performance, so it can fluctuate. The Old Pension Scheme, on the other hand, provides a stable payout based on your final salary, which can give you more security.